What Are Combo Trades in Crypto Options?

Kyan (Premia V4) provides a capital-efficient, customizable, and flexible options trading experience by offering combo strategies with portfolio margin.

Combo trades, also known as multi-leg options strategies, allow traders to simultaneously enter multiple positions to create structured trades. They help optimize profit potential while controlling downside risk.

How to trade combo strategies and who are they useful for? Let’s dive in!

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TL;DR:

• Combo trades execute multiple options at once to achieve a specific risk-return profile and adjust the trader’s exposure to market movements.

• Kyan offers Covered Calls, Spreads, Butterflies, Straddles, Strangles, Iron Condors, Calendar Spreads, and a Custom mode with portfolio margin for maximum capital efficiency.

• Perpetual contracts (perps) on Kyan can be used alongside options to hedge directional risk and improve risk management.

What Are Combo Trades in Crypto?

A combo trade – or a multi-leg strategy – refers to executing multiple options contracts at once to create a structured strategy. These trades involve combining long/short calls, puts, or both, with different strike prices and expirations to achieve a specific risk-return profile.

Common types of combo trades include:

1. Spreads (Bull/Bear): Buying and selling options at different strike prices to cap risk and reward.

2. Straddles & Strangles: Betting on volatility by holding both calls and puts.

3. Iron Condors & Butterflies: Advanced strategies for range-bound markets.

By using multi-leg strategies, traders can create any payoff structure they want, as well as fine-tune their portfolios better than just buying directional calls/puts

How to Trade Multi-Leg Strategies in Crypto Options

Trading multi-leg crypto options requires platforms that support advanced order execution. Here’s how to get started:

Step 1: Choose a Trading Strategy

First, define a strategy based on your market expectations.

Step 2: Select Strike Prices & Expiration

Decide on the strike prices and expirations for each leg of the trade. Balancing risk and reward is key.

Step 3: Use an Options Trading Platform

Some exchanges allow pre-built multi-leg orders, while others require manually executing each leg. On Kyan, users will be able to do both using the Strategy Builder.

Step 4: Monitor & Adjust

Once a position is open, keep track of your portfolio by tracking implied volatility (IV), Greeks, and price movements to manage risk and potential profits.

When to Use Crypto Options Strategies

Combo trades aren’t just for advanced traders—they can be useful in different market conditions:

• Trending Markets: Bull or Bear Spreads allow for controlled directional exposure.

• Volatile Markets: Straddles & Strangles benefit from high price swings.

• Sideways Markets: Iron Condors & Butterflies profit when price remains range-bound.

Combo Trades on Kyan (Premia V4)

Kyan (Premia V4) is introducing institutional-grade multi-leg strategies to crypto options trading, allowing traders to execute combo trades with capital efficiency and transparent risk management.

Combo Options Strategies Available on Kyan (Premia V4)

Directional Strategies

• Covered Call: Holding the underlying asset while selling a call to generate income.

• Cash-secured Put: Holding the underlying asset while selling a put to generate income

• Call Spread: Buying and selling calls with different strikes to manage risk.

• Put Spread: Buying and selling puts with different strikes for downside exposure.

Time-Based Strategies

• Call Calendar: Buying and selling calls with different expirations.

• Put Calendar: Buying and selling puts with different expirations.

Volatility & Neutral Market Strategies

• Call Butterfly: Using multiple call options to profit from low volatility.

• Put Butterfly: Using multiple put options for limited-risk trades.

• Straddle: Buying a call and a put at the same strike for big moves in either direction.

• Strangle: Buying a call and a put at different strikes to profit from volatility.

• Iron Condor: A range-bound strategy using multiple strikes for steady income.

Additionally, Kyan provides Custom mode that allows traders to build a completely unique combo trade according to their needs and trading goals.

Hedging with Perps

Traders on Kyan can hedge their options positions using perps to reduce directional risk and manage exposure more effectively.

By taking an opposite delta position in perps relative to their options trade, traders can offset potential losses from adverse price movements. For example, if holding a long call option, opening a short perp position can help neutralize downside risk if the market moves against the option. A long perp can hedge a short call or put position to limit unexpected losses.

This strategy allows traders to fine-tune their delta exposure, improving risk management while maintaining capital efficiency within Kyan’s portfolio margin system.

Trading Combo Strategies on Kyan (Premia V4)

With portfolio margin and the strategy builder, Kyan enables traders to maximize capital efficiency while executing multi-leg strategies seamlessly.

Combo trades in crypto options allow users to execute strategies with custom payoff structures. They’re important for traders of all levels who want to take advantage of various market conditions. Kyan is launching with institutional-grade trading tools and an enhanced user experience from day 1.

Read more on what Kyan has in store in this article.

Questions about Kyan (Premia V4)?

Stay tuned for more articles about Kyan!

If you have any questions, hop into our Discord or shoot us a message on X. We would love to know your thoughts!

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